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6/16/2011 11:45AM

Markets Hub: Hewlett-Packard Sues Oracle

Hewlett-Packard has filed a lawsuit against software giant Oracle, asking a court to require Oracle to meet what HP says are requirements that it continue to produce software that supports the Intel Itanium server processor. (Photo: Getty Images.)

This transcript has been automatically generated and may not be 100% accurate.

... I ... on an interest in long queues ... Hewlett-Packard and Oracle are real ... I'm ... the spat over a ship ... and not a tale to ... tell tonight we had AllThingsDigital Eric Alphaville might ... they do a lot going on so ... this kit ... it's not like any other chip and Telmex called the ITMN and it was supposed to be the greatest thing in the beginning of the last decade couldn't really turn out that way this was the ... sixty four bit chip going into servers its kind of esoteric ... bizarrely compatible ... with software write ... software for you have to do other stuff but it's it's it's a pain in and I can just turn out to be ... you really talk about the I think ... the Titanic ... EZChip is a non fat effectively is the I can ... Intel the phrase yet did ... yet yet so um it's it's it never really had gotten so after a number of years of work force as well or not supported what they say that Intel was pointy end of life cannot make it any more ... Intel says no that's not too weak to long-term development at how foreigners can keep going ... the only server vendor out there was Intel's develop part of its deal with that that they're they're the only ones that really sell any number of servers with this gem ... so it's kind of like this three way ... relationship war-torn HP and to work together on this relationship for years ... Oracle said in March ... were done were walking away from us ... HP said well that's not really a good thing because we share a lot of customers and of course Intel isn't terribly happy there ... so if I'm going ... on and this takes place against the backdrop of markers departure from Youtube ... also has a lot of tension there ... on HP said well you have some contractual agreements with us and we're gonna force ... you into the city and they shouldn't ... so what is what is the ... likely scenario Here's is just kind of threatening and hoping for some subtle and you really think ... unity with all the way ... to the courthouse in the fighting over I think though probably one of the courthouse with integrators to competing narratives on ... one is that ... HP says that ... there is that these contractual agreements are actually and forty four cents ... no they're not they were in prior versions that are actually four so that's ... that's one piece of that ... the show or call three while the five hundred customers to say well we've got we've we've made the substantial investment easy these days ... we made these multimillion dollar investments in between ... you know ... future compatibility ... is material for buying decision ... now with all sixteen in Silicom Valley is also a lid on doesn't yet is this one little ... example of private cars two more weeks to it ... um it certainly feels kind of odd because the fact of matter is ... that what is that this is not a big piece of HP to it so ... it's not big enough that he's actually discloses how many of the servers they sell ... so it's kind of a small piece of the pieces but you can ... not judge it ... against the backdrop of of birds departure and inattention everything and a departure for or on the tension that exists there so ... there's this these are bad and key partners in Silicon Valley ... of course Oracle now owns the old son Micra system that the ... snow hardware ... hardware competitors that HP NHP is plain that ... the steering customers away from HP servers to no more costs are so you're an investor in eulogy his first on two things one ... when you think about more public to what is it say about each P that they're fighting tooth nail to cling ... to such an old technology that is in a very big business and ... raise questions for me as an investor who after what what's what's so interesting and are part of the problem is Intel Intel is sending these conflicting messages they have this mainstream server chip everybody knows it is called the on ... this that ... this trip is suitable for everything which by itself out of implies that ... it's also suitable for the same work TNT and it's ... so ... they're sort of this refusal to admit that I TTM isn't really ... this long-term thing and as Oracle's case in point ... is not worth the time to develop port in finance I think this is an Oracles position is ... that we're gonna level with our customers about the Syntel intends to kill the chip someday and that in the ... mid to tune your future ... and we're just being us with our customers didn't on HP just all be honest and and HP Intel say we are the odds this was that this really does depend on Mr tink Singh coming on